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Construction of the 4.7 mtpa mill at King of the Hills
has gone seamlessly, despite the ravages of COVID
and material supply shortages

which places us in the Top 10 gold mines in Australia,”
he said. “All of that gives us confidence we hit all the key
parameters of any gold project.”
Having secured the equity component early, Red 5 didn’t rest
on its laurels. Instead, it flew straight into full construction, taking
advantage of global uncertainty around COVID-19.
“We settled on the EPC contract and ordered key pieces of
equipment which we handpicked to our specifications,” Williams
says. “That meant the majority of prices were locked in at 2020
levels. That gave us the benefit of being shielded from the
subsequent price escalation.”
It also meant that by the time Red 5 tapped debt financiers, the
operation was already starting to take shape.
“We completed the debt portion in the June quarter 2021, eight
months after construction started,” Williams says. “That was
another bold move but securing debt had been made easier
because of the brownfields nature of the project and the fact
we were already in construction. It meant financiers could see
the team we had put together and how we were spending the
money. The project had been de-risked.”
The early commitment to equity has also handed Red 5 a natural
growth option.
“It allowed us to secure the SAG mill, which is of a size that
we wouldn’t normally have looked at but it was available at the
time,” Williams says. “It had been fabricated but never used – so
we picked it up for a competitive price.
“There is latent capacity within it which we could take advantage
of. Combined with the brownfields site and the tens of millions of “In the short term, it is about delivering to the plan,” he says.
dollars in infrastructure already there; it is a massive free kick.” “Then in 2023, it will be about stretching our arms out to look at
It is apparent that the company is ready to utilise the processing exploration targets as we have so many near-mine prospects
plant investment for growth purposes. It already plans to close at King of the Hill. After that, if there are stranded assets in the
the Darlot mill in favour of transporting ore to the new facility region and there is value to be added to the company, we would
but Williams is intent on finding additional capacity in the high- certainly look at those. We have a super-sized processing
quality plant. hub which is the lowest cost in the region, which gives us that
“In the feasibility study, we set it at 4 mtpa but through working significant advantage.”
with Mintrex we have been able to reach 4.7 mtpa nameplate,” It may appear ambitious to be talking future acquisitions while
he says. “We have also tried to build scalability with the crushing your current asset is yet to hit production but given Red 5’s
circuit capable of 6 mtpa. We have always had an eye on the recent history, there can be little doubt it is capable of fulfilling
future.” its promise.
The company has already identified easy wins to lift throughput
beyond 5 mtpa and Williams is intent on making the most of
King of the Hills’ newest resurrection.
“You can see from the past few years that growth is part of our
DNA,” he says. “We are committed to delivering a mid-sized
gold mine with a 16-year mine life.
“We have opportunities to expand the mill for minimal capex
and bring some of that 2.4 moz reserve forward. We are looking
for near-mine extensions, both underground and along strike at
the three satellite deposits we have, and we have extended the
tenement package at Darlot.”
Despite the optimistic outlook, Williams is conscious of the need
Access to the Goldfields gas pipeline will allow Red 5 to keep
for Red 5 to stick to its knitting.
operating costs down

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